Pop-up stores are not limited to small retailers or online brands looking for a physical presence anymore.
According to Courtney Subramanian’s articles in Fortune, more and more businesses are finding good reasons to launch pop-up shops as the concept not only provides a chance to generate more sales but also to learn more about customers, test new products and create brand awareness.
Experts cite five ways companies can leverage the pop-up concept as a marketing tool:
1. Offload inventory and test out a new revenue stream
Pop-up shops inherently evoke a sense of urgency with “limited time” offers, which helps boost sales and often converts to larger purchases.
2. Test out new products or experiment with new concepts
Pop-up stores are a great way to incubate an idea in a confined timeframe and isolated scope. Demonstrating new products at this type of store enables a business to collect customer feedback and suggestions before fully going to market. It is also an opportunity to reach and retain more customers.
3. Use it as a marketing opportunity to create brand awareness
More companies are using pop-ups as a marketing tool for brand extension. A temporary physical setup also gives online brands a chance to make consumers aware of their online store, attracting local foot traffic they may not have otherwise had.
Technology-driven companies can also use a temporary space as a way to educate customers on new product and what makes their product unique to the market.
4. Timing a pop-up in conjunction with seasonality or holidays
Consumers tend to buy during seasonal and holiday shopping. By creating a seasonal experience, companies can provide a “one-stop shop” for customers and provide an opportunity for retailers to collaborate with other businesses.
The store-within-a-store model is another type of pop-up that’s becoming more common. Allowing smaller businesses to test market their items by setting up an area within a larger store and attract new business for the bigger retailer.
5. Omni-channel retail is the future of the industry
More businesses are leveraging Omni-channel retail, or the seamless approach of a retailer selling online, in a store and on the road. As the Massachusetts Institute of Technology (MIT) report “Beyond the Checkout Cart” points out, many retailers are no longer distinguishing sales by channels while consumers are using a multi-platform for discovery and purchase.
Read more at 5 ways companies can leverage pop-up stores and Pop-up shops are becoming more permanent
